An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

The interrelationships among service quality,customer satisfaction,and customer loyalty: Examination of the fast-food industry

The purpose of this study was to use customers’ perspectives to develop a conceptual model for improving service quality and enhancing customer satisfaction and loyalty. The 197 samples were selected from customers of leading fast food franchise enterprises in Taiwan. The research results indicate that service quality positively influences customer satisfaction and customer loyalty. Service quality positively influences customer loyalty through customer satisfaction. The research findings indicate that managers need to ensure they have efficient service quality to enhance customer satisfaction and customer loyalty levels.     

An integrative approach to relationship marketing,customer value,and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

Given how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

An integrated model of customer social exchange relationship: the moderating role of customer experience

This article addresses how the customer social exchange relationship affects customer satisfaction and, in turn, repurchase intention. On the basis of the stimulus–organism–response model, this article argues that perceived organisational support, perceived customer support, and perceived service provider support influence customer satisfaction, which in turn affects repurchase intention. Furthermore, this study argues that perceived organisational support is the most important predictor of customer satisfaction for high-experience customers, whereas perceived customer support is the most important predictor of customer satisfaction for low-experience customers. A survey of 144 users of the foreign language institute on a university reveals that most of these hypotheses are supported.     

基于顾客满意和顾客忠诚关系的市场细分方法研究

There exist different views and opinions on the links between customer satisfaction and loyalty. This paper suggests that the impact of customer satisfaction on loyalty varies across customers. This study choose the cell phone industry in China as an example and segmented customers with a novel method of clusterwise linear regression, based on the association between customer satisfaction and loyalty. Results revealed sample heterogeneity in relation to the two factors. The loyalty of some subgroups is positively related to satisfaction significantly, while that of other clusters is independent of satisfaction. Translated from Nankai Guanli Pinglun 南开管理评论 (Nankai Business Review), 2005, 8(5): 26–30     

Effects of customer loyalty on customer entitlement and voiced complaints

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.     

Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry

Increased support from customers for Islamic financial services is very important to create resilience and competitiveness in the Islamic banking industry. By highlighting certain social activities, this paper estimates the role of Islamic banks’ CSR in influencing customer loyalty, both individually and through the integrated roles of image, trust, satisfaction, and reputation. These paths explore how CSR makes customers impressed, convinced, satisfied, amazed, and ultimately loyal to Islamic banks. The empirical analysis of partial least square structural equation modeling (n = 283) has shown that CSR directly and positively impacts loyalty. Indirectly, these two aspects have an insignificant relationship through the serial roles of image-reputation and satisfaction-reputation, but significant through the single role of reputation and the serial role of trust-reputation. This study has resulted in an updated prediction model of Islamic banking customer loyalty. The practical implication lies in the importance of developing CSR to generate trust and reputation which ultimately increase customer loyalty toward Islamic banks.     

Making customer relationship management work: evidence from the banking industry in Taiwan

Soon after becoming a WTO member, Taiwan found the internationalisation and liberalisation in the financial industry ushered its domestic banks into a new era. In response to this global trend, all its banks strove to rely on customer relationship management (CRM) to enhance customer value (CV). This study aims to probe further into the connection between CV and CRM. A series of examinations revealed that (1) both functional and social value impact customer behaviour directly and positively; (2) customer satisfaction positively and directly affects customer loyalty; (3) a positive and direct relationship exists between customer loyalty and customer behaviour; and (4) the positive and significant relationship between CV and customer behaviour can be developed through mediators such as customer satisfaction and customer loyalty. Consequently, banks should offer their customers different services, products, and marketing channels to meet their diversified needs to cultivate a win-win environment of CRM for both parties.     

Exploring the customer's intention to switch firms: The role of customer‐related antecedents

This study examined the customer‐related antecedents of the customer's intention to switch firms. Customer citizenship behavior was a key element in this study. Scholars have extensively studied the antecedents of customer citizenship behavior. However, the way that customer citizenship behavior relates to other attitudinal variables and the intention to switch has scarcely been analyzed. The proposed hypotheses were verified using partial least squares variance‐based structural equation modeling applied to 947 users of beauty care service firms in five countries. The results suggest that customer citizenship behavior is an antecedent of satisfaction, trust, and attitudinal loyalty. Two of these variables influence customers’ intentions to abandon relationships with the service provider. The implications of these findings enhance managers’ and scholars’ understanding of the determinants of customers’ intentions to switch firms.     

The importance of customer satisfaction in explaining brand and dealer loyalty

The positive influence of customer satisfaction on brand and dealer loyalty is often taken for granted. In this study we attempted to prove whether this relationship really exists. In order to do so we examined the case of an automobile‐dealer network. Three different types of customer satisfaction were distinguished: (a) satisfaction with the car; (b) satisfaction with the sales service and (c) satisfaction with the after‐sales service. It was expected that all three types of satisfaction would have an influence on brand loyalty as well as on dealer loyalty. More specifically, it was expected that satisfaction with the car would be the major determinant of brand loyalty and that satisfaction with the service (both sales‐ and after‐sales service) would be the major determinant of dealer loyalty. Furthermore, a study of the literature revealed that dealer loyalty might also significantly affect brand loyalty.

In the empirical part of the study, customers (n = 416) of different automobile‐dealers of the same brand were asked to fill in a mailed questionnaire. The three different types of customer satisfaction and the intention to buy the same brand of car again, as well as the intention to buy from the same dealer again were measured. The customers were also asked why they would buy the same brand (again) or from the same dealer. In general, the analyses of the results revealed that: customer satisfaction with the car, as well as dealer loyalty are major determinants of brand loyalty; customer satisfaction with the sales service as well as with the after‐sales service are major determinants of dealer loyalty and dealer loyalty is an intervening variable in the relation between satisfaction and brand loyalty. Furthermore, it was found that the strength of the relationship between different types of satisfaction and loyalty indicators differs markedly between various market segments (private/business use of car and new/used car buyers). Several marketing implications are presented. A distinction may be made between the implications for the manufacturer of the physical product and the automobile dealer rendering the service.     

E-retail factors for customer activation and retention: An empirical study from Indian e-commerce customers

Customer satisfaction has emerged as one of the most important factors that guarantee the success of online store; it has been posited as a key stimulant of purchase, repurchase intentions and customer loyalty. A comprehensive review of the literature, theories and models have been carried out to propose the models for customer activation and customer retention. Five major factors that contributed to the success of an e-commerce store have been identified as: service quality, system quality, information quality, trust and net benefit. The research furthermore investigated the factors that influence the online customers repeat purchase intention on the basis of the Means End Chain theory (MEC) and Prospect theory. By hypothesising that a combination of both utilitarian value and hedonistic values are needed to affect the repeat purchase intention (loyalty) positively, Structural equation model has been presented on the primary data collected from the Indian online shoppers. Results indicate the e-retail success factors, which are very much critical for customer satisfaction. By increasing the utilitarian value and hedonistic values derived by the customers, customer satisfaction and hence the customers repeat purchase intention can be increased significantly.     

Can the label ‘member’ in a loyalty program context boost customer satisfaction?

ABSTRACT

This study examines if labeling customers as ‘member’ versus ‘non-member’ in the context of a firm’s loyalty program can influence the customers’ evaluations of the firm. It was assumed that firms’ membership-related labels, which typically are euphemisms in relation to the mere discounts offered by many loyalty programs, can (a) prime customers so that positively charged content in a general member category is activated, and that (b) this content can have a positive impact on evaluations of firms with loyalty programs. An experiment showed that evoking customers’ membership status resulted in a higher level of sense of belonging, and higher customer satisfaction, for members than for non-members. Sense of belonging mediated the impact of evoking membership status on customer satisfaction. A second study confirmed that the content of customers’ general member construct is indeed associated with sense of belonging and satisfaction.     

The impacts of complaint efforts on customer satisfaction and loyalty

ABSTRACT

This study identifies the depth structure of customer complaint efforts and investigates the roles of each dimension in the structural relations with customer satisfaction and loyalty. Three dimensions of customer complaint efforts were identified, procedural effort, cognitive effort, and affective effort in the restaurant context. This study uses two subsamples to develop and validate the proposed three-dimension customer complaint efforts scale. Exploratory factor analysis was conducted on the first subsample of 211 participants. Confirmatory factor analysis and structural equation modeling were applied on the second subsample of 328 participants. It is found that customers’ physical/procedural and cognitive efforts exerted during the complaint resolution process compound their affective efforts, which further reduce customer satisfaction with the complaint process and erode customer behavioral and attitudinal loyalty. This study bridges the research gap gaps and provides managerial implications to help reduce customer complaint efforts and ensure positive customer behaviors.     

The link between customer satisfaction and loyalty: the moderating role of customer characteristics

This research examines whether trust and commitment mediate the extent to which satisfaction influences loyalty, and whether such mediation is conditional on certain demographic or situational customer characteristics. The findings suggest that assuming homogeneity supports the general notion that trust and commitment partially mediate the extent to which satisfaction influences loyalty. FIMIX-PLS and PLS-MGA analyses substantiate that this mediation differs between two distinct customer segments. The two segments reveal heterogeneity in how trust and commitment partially mediate the link between satisfaction and loyalty. That is, the effect of satisfaction on loyalty is fully mediated by trust and commitment in the segment of customers with high education, whereas satisfaction is partially mediated by trust, but not by commitment, in the other segment of customers with less education.     

The moderating role of switching barriers on customer loyalty in the life insurance industry

In recent service management literature, researchers have incorporated switching barriers as an important potential influential factor on customer loyalty and found that the impact of customer satisfaction on customer loyalty might vary under different switching barrier conditions. However, switching barriers and their importance in the life insurance service contexts have received little in-depth attention. This study aims to examine the impact of switching barriers as a potential moderator on the complex interrelationships among the antecedents and consequences of customer satisfaction in the life insurance service context. The main findings of this study show that the switching barriers do have a moderating effect and play a crucial role in winning customer loyalty.     

The Service Industries Journal: Its Ethos and Emphases

This study investigates the dynamics of customer affection and customer trust on customer loyalty intention after cases of service failure and recovery. The results demonstrate that after customers experience service failure and recovery, customer affection has a greater influence on customer trust but less in loyalty intention, whereas customer trust becomes more influential in loyalty intention in comparison to the time prior to a service failure. The findings suggest that the rebuilding of loyalty after a service failure and recovery relies primarily on the recovery of trust and that the key determinant of trust recovery is customer affection. Theoretical and managerial implications are also discussed.     

Cultural influences on B2B service quality-satisfaction-loyalty

The link between service quality, customer satisfaction, and customer loyalty has drawn the attention of both academic researchers and practitioners. They are also focusing on the effect of cultural differences on customer attitudes and behaviour in the global service industry. This paper examines the relationships between service quality, customer satisfaction, and loyalty as well as the moderating effect of cultural differences on the above relationships in the industrial business-to-business (B2B) service sector. The paper presents an empirical study using datasets collected from 7652 industrial customers across 55 countries and uses structural equation modeling (SEM) to test the hypotheses. The application of Net Promoter Score (NPS) as a customer loyalty metric based on customer experience management (CEM) is studied in relation to customer satisfaction. The study results demonstrate the positive relationship of service quality, satisfaction, and loyalty. In terms of the effect of cultural differences, the study finds that cultural dimensions of uncertainty avoidance negatively moderate the relationship between service quality and satisfaction, while individualism positively moderates the relationship between service quality and satisfaction. However, cultural differences do not impact on the relationship between satisfaction and loyalty.     

Effects of communication and financial concerns on banking attitude-behaviour relations

Despite extensive discussion of the concept of Islamic banking, which is based on the fundamental doctrines of Islamic law (Shariah) and Islamic economics (prohibition of interest and profit-loss sharing), few studies have explored the factors that potentially affect behaviour intentions among customers. This study investigates direct and moderating effects of communication and financial factors on customer attitudes and behavioural intentions towards Islamic banking. Data were collected from the customers of Islamic banks and the Islamic banking divisions of conventional banks in Malaysia using online surveys. The hypotheses were tested using hierarchical regression analysis. The results suggest that relationship marketing, informative advertising, perceived benefits, and profit-loss sharing are important determinants of behavioural intentions among both Muslim and non-Muslim customer groups. This study also found moderating effects for most of the conceptualized moderating variables, particularly attitude interactions with informative advertising, ease of online banking, and the principle of profit-loss sharing. There are both notable similarities and differences in the results for the two customer groups. The findings imply that different strategies should be used both to retain existing customers and attract new ones.